Man who worked with town of Brownville indicted by federal grand jury

BANGOR — A Vermont man who worked with the town of Brownville to secure federal grant money to expand his ammunition-making facility has been indicted by a federal grand jury for wire fraud in connection with the alleged misuse of those funds.

Craig Sanborn, 63, of Maidstone, Vt., worked with town officials and the Piscataquis County Economic Development Council in 2005 to apply for a $300,000 Community Development Block Grant, federal money passed through the Maine Department of Economic and Community Development.

Instead of bringing his bullet-making business to town and renovating the rail terminal as the grant required, Sanborn fraudulently billed the town for services, then deposited the money in his checking account, according to the indictment, dated Dec. 13.

The document was unsealed Dec. 19.

Because Sanborn faxed the fraudulent bills to the Brownville town office, he was charged with wire fraud, the indictment said. He allegedly submitted a total of six invoices on Dec. 31, 2007, the deadline for submission of grant-related expenses. They were from Magkor Industries and Pyro Design Co., ranging from $5,105 to $230,625, the indictment said.

Sanborn is scheduled to be arraigned on Jan. 3 in U.S. District Court in Bangor.

If convicted, he faces up to 20 years in prison and a fine of up to $250,000. Sanborn also could be ordered to pay restitution.

Brownville Town Manager Matthew Pineo and Walter Cook, chairman of the town’s Board of Selectmen, did not immediately return messages on Wednesday.

Janet Sawyer, business development director at the Piscataquis County Economic Development Council, declined to comment on Sanborn or the case against him. She said she was not with the agency when his involvement with it occurred.